The uptrend in home sales is in line with all of the underlying fundamentals - pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.
(PRWEB) February 22, 2012
Homes.org has created their latest real estate health report using data from the National Association of Realtors® (NAR) releases January Existing-Home Sales report as well as the Housing Start Ups report. Homes.org's analysis highlights the key findings and discusses what sellers and buyers are likely to experience in the coming months based on the market performance in January.
Both the January Existing Home Sales Report and the Housing Starts Report reveal that 2012 is starting off strong, a welcome change for real estate agents across the country. This momentum began in the end of 2011 and it appears that overall markets are finally showing signs of recovery, or at least stabilization.
Key Findings in the January 2012 Existing Home Sales and Start Ups Reports Include:
- 4.57 million existing home sales in January
- 4.3% increase in home sales compared to last month
- 0.7% above the number of home sales in January 2011
- Unsold inventory of homes in trending downward, 20.6% lower than a year ago
- Median existing home price is at $154,700 for all types of homes
- Foreclosures and short sales accounted for 35% of the sales
- 33% of home buyers were first-time buyers
- 23% of home buyers were investors
- 31% were all cash sales
- 1.5% increase in housing starts in January
- Building permits were up last month from the previous period
There were modest to moderate increases in sales in all four regions across the U.S. in January, however prices fell across the board. The West saw the largest increase in sales at 8.8%, followed by the South at 3.5%, the Northeast with 3.4% and the Midwest region with 1%.
Top Factors for the Improvement in Home Sales
- Favorable market conditions for buyers
- Sustained job creation
- Decrease in available new builds
- Improved home affordability
Conditions seem to be steadily improving for buyers making this one of the best times to buy in the past few decades. Home prices are well below what they were several years ago, while rental rates are on the rise. Paired with slow but steady job growth, more buyers feel confident enough to start entering the market.
“The uptrend in home sales is in line with all of the underlying fundamentals," said NAR chief economist Lawrence Yun. "Pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”
Existing homes may have to start contending with more new builds soon though. In January both the number of housing starts and building permits received were up from the month prior. Overall, this is good news for the economy which will likely have a positive spill-over affect for the real estate industry.
Homes.org is a fast growing real estate search portal that offers users much more than MLS listings. Homes.org gives users access to a rich collection of resources, including but not limited to, real estate listings, home owner finance tools, home service tools. Homes.org brings buyers, sellers and renters important information about the current markets and intelligent tools by partnering with real estate professionals from around the country. Homes.org is a subsidiary of Star Nine Ventures, Inc. headquartered in Austin, TX.
About Star Nine Ventures®
Star Nine Ventures® is an Austin-based, marketing-driven venture creation company targeting a wide range of national business-to-consumer online marketplaces. Star Nine's core mission is to build businesses that provide exemplary consumer experiences and unparalleled customer service.